Huawei Likely to Outpace Apple to Become 2nd Largest Smartphone Vendor in 3Q17

Huawei is likely to outpace Apple to become the second largest smartphone vendor globally in the third quarter of 2017 as sales of China-based vendor's high-end P- and M-series as well as the more affordable Honor-branded models have continued to gain momentum, according to sources from Taiwan's handset supply chain.

Huawei captured the third position in the second quarter of 2017 with shipments totaling 38.5 million units and taking an 11.3% share globally, according to IDC. By doing so, it managed to narrow its shipment gap with Apple to a mere 2.5 million units in the second quarter, during which Apple shipped 41 million units for a 12% share.

In China alone, Huawei saw its smartphone shipments grow 22.6% on year to 23.5 million units in the second quarter of 2017, accounting for a 21% share. In contrast, Apple saw its shipments in the market decline 7.6% to eight million units for 7.1% share.

Huawei also performed well in other markets outside China in the first half of 2017, with its shipments in Southeast Asia, Japan and Korea growing over 45% on year, respectively, in these areas.

Additionally, Huawei's smartphone shipments to Europe as a whole expanded 18% on year in the first six months of 2017. In particular, it doubled its shipments in Germany, Finland and Poland during the period, indicated the sources.

Buoyed by seasonal factors, Huawei is expected to continue to ramp up its shipments to over 40 million units in the third quarter of 2017, the sources estimated.

On the contrary, Apple is likely to see its shipments dip slightly in the third quarter from the 41 million units it shipped a quarter earlier as many consumers may withhold their purchases until the fourth quarter when the next-generation iPhones are available. This is will offer a chance for Huawei to outperform Apple in terms of shipment volume in the third quarter, commented the sources.